Coinsbit is a centralized cryptocurrency exchange, run by the EXRT Services OU company registered and headquartered in Tallinn, Estonia. The exchange was launched in August 2018 and became one of the several cryptocurrency trading venues, situated in the crypto capital of the Baltics.
Going through its website, you will see plenty of marketing information, such as а proclaimed “processing speed of up to 10 000 trades per second and 1 000 000 TCP connections”, 24/7 support in a variety of languages (English, Mandarin, Japanese, Russian, Indonesian, Spanish, German) or buzzwords like “next-generation cryptocurrency exchange.” PR materials go even beyond that describing Coinsbit as “the first exchange in the history of cryptocurrencies, which has implemented a large integration with 200 000 POS-terminals”. However, when we get in more details and take a look under the surface, plenty of worrying facts start to appear.
First of all, it is hard to track down the team behind the exchange. Some sources refer to Nikolay Udianskiy as a CEO and co-founder. However, at the time of this writing, his LinkedIn profile lacks any meaningful information, aside from the “Investment Consultant, Bitcoin” position in Bangkok, Thailand or the main title “IEO Marketing.” Other members of Coinsbit’s team can also be found on LinkedIn. Most of them hold the position “Team Manager”, but aside from their experience working for the Estonian exchange, there is no prior information or activity. Besides, they have a limited amount of connections (ranging from 4 to 120), which seems suspicious for managers at a “next-generation cryptocurrency exchange.”
Another worrying fact is that there is a lack of information about the company behind Coinsbit or its founders. A quick check in Estonia’s public registers reveals that the company was established on 2nd February 2018 with €2 500 initial capital. However, at the time of this writing, there is no additional information about Coinsbit’s owners.
Aside from that, the Coinsbit website is written in poor English, which is strange, considering that the exchange claims to offer 24/7 customer support in so many languages.
Another bothering thing is that, at the time of this writing, Coinsbit doesn’t allow its users to delete their accounts. Instead, it offers to “block the account”, which happens through a ticket in the technical support, where “you need to specify a valid e-mail, KYC data.” This is in total dissonance with the following statement, in the FAQ question on Coinsbit’s website: “The main priority in our work is the security of our client’s personal data and security. We use advanced methods and technologies in the field of security”.
When it comes to the public opinion of the exchange, it is hard to find any transparent positive opinions coming from Coinsbit users. Forums like Bitcointalk and Reddit are full of comments of users who struggle to withdraw their funds or cannot get in touch with the 24/7 customer support. Although the exchange’s team often gets involved in the threads where users complain, instead of addressing their issues, it regularly posts PR materials.
One of Coinsbit’s features that raises eyebrows is the so-called “InvestBox”. As per its web page: “Invest your free coins to InvestBox! It’s a tool for devs to promote their coins. It’s NOT Pyramid/HYIP, all payments are made from special fund. InvestBoxes can change status from Active to «Finish», but you can close your investment any time, it’s 100% safe.” Exactly the same text can be found also on the Russian cryptocurrency exchange Yobit’s webpage as well.
Many users who have tried to use the feature report having troubles withdrawing their funds.
At the time of this writing, Coinsbit hasn’t reported suffering any hacks or malicious activities.